 Daily Top 5 |
OpenAI’s $110 billion mega round; Vaishnaw demands fair creator pay
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OpenAI locked in one of the largest private capital infusions in history. This and more in today’s ETtech Top 5.
Also in the letter:
■ PLI 2.0 for smartphones
■ Anthropic vs Pentagon
■ Block trims workforce
Sam Altman, CEO, OpenAI
OpenAI has secured $110 billion in fresh capital, valuing the company at $730 billion and cementing the ChatGPT maker at the centre of the AI build-out.
Deal details:
The raise ranks among the largest private funding rounds globally and comes amid accelerating demand for compute, infrastructure, and enterprise AI services.
Why this matters: The scale of capital is a clear sign that hyperscalers and chipmakers are locking in strategic access to OpenAI’s models and ecosystem. It also sharpens competitive pressure across cloud providers and AI labs racing to deploy ever-larger systems.
Eternal founder Deepinder Goyal startup Temple, which is building a wearable to track cerebral blood flow, has raised $54 million (Rs 493 crore) in seed funding.
Round details: Regulatory filings from the Registrar of Companies (RoC) show backing from:
The round values the company at $190 million post-money.
Other investors:
Goyal invested Rs 104 crore, or 21% of the total raise. More than 30 Temple employees also participated at “par valuation.”
Yes, and? Temple launched a hiring drive with unusual eligibility criteria: male applicants have a body fat percentage below 16%, females below 26%.
Goyal stepped down as CEO of Eternal, the parent of Zomato and Blinkit, in February to focus on his longevity and aerospace ventures.
Also Read: Deepinder Goyal's LAT Aerospace acquires robotics startup Sharang Shakti
IT minister Ashwini Vaishnaw said social media platforms should fairly share revenue with content creators, including news organisations, influencers, academics and researchers.
What’s the matter? Speaking at the Digital News Publishers Association conclave, Vaishnaw said individuals who generate value on platforms — including those in remote regions — must receive a share of the revenue.
He also called for stricter safeguards around AI-generated content. Platforms, he said, must not deploy a person’s face, voice or likeness without explicit approval. “Consent must be mandatory," he remarked.
Quick recap: His remarks follow the Department for Promotion of Industry and Internal Trade’s (DPIIT) earlier view that AI companies should pay royalties to creators whose data is used to train models.
What else? Vaishnaw said digital intermediaries must take responsibility for content carried on their platforms to preserve public trust.
He urged stronger action against deepfakes, fake news and misinformation and emphasised protections for children and vulnerable groups online.
Also Read: India AI Impact Summit: How startups showcased solutions built across healthcare, education, enterprise and more
With the current production-linked incentive (PLI) scheme ending on March 31, the government has begun discussions with smartphone manufacturers on a possible second phase.
Although policymakers have argued against extending incentives to preserve long-term competitiveness, smartphones may be treated differently.
Tariff changes: The trigger is a recent US Supreme Court ruling that scrapped fentanyl-linked tariffs on China, restoring zero duty access for certain Chinese exports to the US. That narrows the edge Indian manufacturers briefly enjoyed.
India's cost disability relative to China has fallen from 18-19% to 11-14%, but experts say the gap is still wide enough to affect pricing and scale without government backing.
Yes, and: A government official told us informal consultations have taken place with Foxconn, Tata, Apple, Samsung, Bhagwati (Micromax), Dixon and Lava.
Anthropic has refused a Pentagon demand to remove safeguards from its AI systems as part of negotiations over a $200 million defence contract, escalating tensions between the two sides.
The company faces a 5 PM Friday deadline tied to a 2025 contract proposal involving use of AI in classified systems.The Pentagon has asked Anthropic to provide broader access to its models, including the removal of certain built-in restrictions.
Warring sides: The controversy began when Anthropic suspected use of its technology in the January 3 attack on Venezuela by the US. Amodei met defence secretary Pete Hegseth on February 24, after which the company was given until February 27 to comply or risk losing the contract.
The Pentagon has said it would not deploy Claude for mass surveillance of Americans or autonomous drone operations — two areas Amodei has publicly flagged as red lines.
CEO’s take: Amodei wrote the company “cannot in good conscience accede” to the request. “It is the Department’s prerogative to select contractors most aligned with their vision,” he added, offering to support a smooth transition. if offboarded.
Holdout: Peers, including Meta, Google and xAI, have agreed to supply models for lawful defence applications.
Jack Dorsey, CEO, Block
Block Inc, an American financial services and digital payments company, will cut around 4,000 jobs, nearly 40% of its workforce, marking one of the largest single-company layoffs of 2026. CEO Jack Dorsey has positioned the move as a reset aimed at speed, simplicity and AI-led efficiency.
Details: In a note to employees, Dorsey said the fintech firm had become “too slow and layered” and must operate more like a startup. The layoffs will span Square, Cash App and support functions. Affected staff will receive severance and extended healthcare benefits. Block shares rose about 20% in extended trading post-announcement.
Why it matters: Unlike earlier cycles driven by macro uncertainty, Block framed the cuts as structural, arguing that AI and automation allows the firm to run leaner without reducing output.
Other tech firms are making similar adjustments.
Also in the letter:
■ PLI 2.0 for smartphones
■ Anthropic vs Pentagon
■ Block trims workforce
OpenAI's $110 billion funding round draws investment from Amazon, Nvidia, SoftBank
OpenAI has secured $110 billion in fresh capital, valuing the company at $730 billion and cementing the ChatGPT maker at the centre of the AI build-out.
Deal details:
- Amazon led the financing with a $50 billion commitment, starting with an initial $15 billion, and the remainder in the coming months.
- Nvidia and SoftBank invested $30 billion each.
The raise ranks among the largest private funding rounds globally and comes amid accelerating demand for compute, infrastructure, and enterprise AI services.
Why this matters: The scale of capital is a clear sign that hyperscalers and chipmakers are locking in strategic access to OpenAI’s models and ecosystem. It also sharpens competitive pressure across cloud providers and AI labs racing to deploy ever-larger systems.
Deepinder Goyal’s wearable startup Temple raises $54 million from Steadview, Peak XV, others
Eternal founder Deepinder Goyal startup Temple, which is building a wearable to track cerebral blood flow, has raised $54 million (Rs 493 crore) in seed funding.
Round details: Regulatory filings from the Registrar of Companies (RoC) show backing from:
- Peak XV Partners
- Steadview Capital
- Dharana Capital
- Info Edge Ventures
- Over 80 individual backers.
The round values the company at $190 million post-money.
Other investors:
- Kunal Shah (Cred)
- Vijay Shekhar Sharma (Paytm)
- Nithin and Nikhil Kamath (Zerodha)
- Varun Alagh (Mamaearth).
- Some senior Eternal executives, including CFO Akshant Goyal, District head Rahul Ganjoo, and food delivery CEO Aditya Mangla, also participated.
Goyal invested Rs 104 crore, or 21% of the total raise. More than 30 Temple employees also participated at “par valuation.”
Yes, and? Temple launched a hiring drive with unusual eligibility criteria: male applicants have a body fat percentage below 16%, females below 26%.
Goyal stepped down as CEO of Eternal, the parent of Zomato and Blinkit, in February to focus on his longevity and aerospace ventures.
Also Read: Deepinder Goyal's LAT Aerospace acquires robotics startup Sharang Shakti
Social media companies must share revenue with creators: Ashwini Vaishnaw
IT minister Ashwini Vaishnaw said social media platforms should fairly share revenue with content creators, including news organisations, influencers, academics and researchers.
What’s the matter? Speaking at the Digital News Publishers Association conclave, Vaishnaw said individuals who generate value on platforms — including those in remote regions — must receive a share of the revenue.
He also called for stricter safeguards around AI-generated content. Platforms, he said, must not deploy a person’s face, voice or likeness without explicit approval. “Consent must be mandatory," he remarked.
Quick recap: His remarks follow the Department for Promotion of Industry and Internal Trade’s (DPIIT) earlier view that AI companies should pay royalties to creators whose data is used to train models.
What else? Vaishnaw said digital intermediaries must take responsibility for content carried on their platforms to preserve public trust.
He urged stronger action against deepfakes, fake news and misinformation and emphasised protections for children and vulnerable groups online.
Also Read: India AI Impact Summit: How startups showcased solutions built across healthcare, education, enterprise and more
Smartphone makers may get PLI scheme 2.0: Government eyes tariffs, China challenges, and programme success
With the current production-linked incentive (PLI) scheme ending on March 31, the government has begun discussions with smartphone manufacturers on a possible second phase.
Although policymakers have argued against extending incentives to preserve long-term competitiveness, smartphones may be treated differently.
Tariff changes: The trigger is a recent US Supreme Court ruling that scrapped fentanyl-linked tariffs on China, restoring zero duty access for certain Chinese exports to the US. That narrows the edge Indian manufacturers briefly enjoyed.
India's cost disability relative to China has fallen from 18-19% to 11-14%, but experts say the gap is still wide enough to affect pricing and scale without government backing.
Yes, and: A government official told us informal consultations have taken place with Foxconn, Tata, Apple, Samsung, Bhagwati (Micromax), Dixon and Lava.
Anthropic rejects Pentagon's requests in AI safeguards dispute: CEO
Anthropic has refused a Pentagon demand to remove safeguards from its AI systems as part of negotiations over a $200 million defence contract, escalating tensions between the two sides.
The company faces a 5 PM Friday deadline tied to a 2025 contract proposal involving use of AI in classified systems.The Pentagon has asked Anthropic to provide broader access to its models, including the removal of certain built-in restrictions.
Warring sides: The controversy began when Anthropic suspected use of its technology in the January 3 attack on Venezuela by the US. Amodei met defence secretary Pete Hegseth on February 24, after which the company was given until February 27 to comply or risk losing the contract.
The Pentagon has said it would not deploy Claude for mass surveillance of Americans or autonomous drone operations — two areas Amodei has publicly flagged as red lines.
CEO’s take: Amodei wrote the company “cannot in good conscience accede” to the request. “It is the Department’s prerogative to select contractors most aligned with their vision,” he added, offering to support a smooth transition. if offboarded.
Holdout: Peers, including Meta, Google and xAI, have agreed to supply models for lawful defence applications.
Block leads new layoff wave, tech firms reset headcount
Block Inc, an American financial services and digital payments company, will cut around 4,000 jobs, nearly 40% of its workforce, marking one of the largest single-company layoffs of 2026. CEO Jack Dorsey has positioned the move as a reset aimed at speed, simplicity and AI-led efficiency.
Details: In a note to employees, Dorsey said the fintech firm had become “too slow and layered” and must operate more like a startup. The layoffs will span Square, Cash App and support functions. Affected staff will receive severance and extended healthcare benefits. Block shares rose about 20% in extended trading post-announcement.
Why it matters: Unlike earlier cycles driven by macro uncertainty, Block framed the cuts as structural, arguing that AI and automation allows the firm to run leaner without reducing output.
Other tech firms are making similar adjustments.
- Meta: Over 1,000 roles cut across Reality Labs and other teams in early 2026, extending a multi-year efficiency drive.
- Ebay: Around 800 employees laid off, roughly 6% of its workforce, to focus on core marketplace operations.
- HP: Plans to phase out between 4,000 and 6,000 positions through fiscal 2028 as AI integration progresses.
- Pinterest: Trimmed staff as part of its AI pivot.
- Amazon: Preparing to eliminate about 16,000 corporate roles.
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